Geospatial technology market in India expected to touch USD 613 million mark...

Geospatial technology market in India expected to touch USD 613 million mark by 2010

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India, 30 May 2006: Growth in the use of spatial technologies based on maps and satellite imageries has secured acceptance for geospatial technology in India as an effective decision-making tool. This technology is used in integrated land information systems, education sector and urban planning. Many government agencies have now realised that this technology can provide them the much-needed tool to address the ever increasing demand for data availability.

According to a recent study, in 2005 alone, the Indian government invited tenders worth a few hundred crores of rupees in this sector, giving a clue to the potential awaiting. Indian government is the major user of geospatial applications. The extensive use of Geographical Information System (GIS) is palpable in various fields either for laying of pipelines or building roads or laying transmission grids.

The first ever Indian geospatial industry survey report conducted by geospatial publications Geospatial Today and Spatial India, says that the market estimates for these services (domestic and export markets) is expected to record a potential growth from Rs 962 crore (USD 209 million) in the year 2005 to Rs 2,820.30 crore (USD 613 million) by 2010 at a CAGR of 14.5 per cent.

The study, which focused on different parts of geospatial Industry including geospatial data, services (including remote sensing), products and export of geospatial services from India, was conducted in association with Antrix Corporation and Survey of India. According to the report, the domestic market estimates for these services in India amounts to about Rs 562 crore (USD 122 million) in fiscal 2005 and is expected to reach Rs 1,824.28 crore (USD 396 million) by 2010, at a CAGR of 17.57 per cent per annum. “The key driver for this increased growth is the expected investments in land information systems (ILIS) in several states of the country,” the report added.

In India, land use mapping can be used extensively in agriculture and urban areas. The users of these services include ministry of rural development, ministries of agriculture and state government departments including land revenue. The market estimates for these services in India amount to about Rs 12 crore (USD 2.6 million) in FY 2005 and is estimated to grow at a CAGR of 200 per cent to touch Rs 576 crore (USD 125 million) by 2010, it added.

Along with land information systems, transportation sector is another segment, which is estimated to grow by a CAGR of 40 per cent per annum in the next five years. The figures for 2005 is Rs 10 crore (USD 2.1 million) while it will touch Rs 53 crore (USD 11.5 million) by 2010. Urban development and planning is another area where geospatial technologies hold immense potential, according to the report. Though FY2005 registered a humble Rs 20 crore in this sector, it is expected to grow by CAGR of 20 per cent per annum. The study said that the country, which has emerged as a major data conversion centre for geospatial services, will create enormous employment opportunities. In FY 2005, this sector marked Rs 720 crore with an expected growth rate of 20 per cent.